Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2015

Property Tax Annotations

790.0000 SUPPLEMENTAL ASSESSMENT

Annotation 790.0125

790.0125 Homes Repossessed By Department of Veterans Affairs. When property is sold to a veteran by the Department of Veterans Affairs under an installment contract, the Department holds legal title to the property as security until the purchase price has been paid in full, but the beneficial interest in the property has passed to the veteran in possession (Eisley v. Mohan, 31 Cal.2d 637). Thus, there is a change of ownership and the veteran is liable for applicable property taxes.

If a veteran fails to make installment payments or otherwise breaches the contract, the Department may cancel the contract, force a forfeiture, and repossess the property (Military and Veterans Code section 987.77). At that time, the Department becomes the sole owner of the property; and unless it voluntarily agrees to pay property taxes, the property, being property owned by the State, is exempt from taxation under article XIII, section 3(a) of the California Constitution. C 2/27/1985.